Schroders Capital, a global investment management firm, has recently received regulatory approval from the Financial Conduct Authority (FCA) in the UK to launch a new Long-Term Asset Fund (LTAF). This fund will focus exclusively on renewable energy and energy transition-aligned infrastructure, and will be managed by Schroders Greencoat, the renewable energy specialist of Schroders Capital.
Schroders Greencoat LTAF is the first authorized investment fund in the UK with a sole investment remit in renewable energy and related infrastructure. This comes after the recent launch of Schroders Capital Climate+ LTAF, which was the UK’s first LTAF.
LTAFs are open-ended investment vehicles that are regulated, designed to enable a broader range of investors to invest efficiently in illiquid and private assets, with longer-term horizons. Schroders Capital aims to make investment in renewable energy and energy transition-related infrastructure accessible to a wider range of investors, including those in the DC pension market.
Richard Nourse, Managing Partner and Schroders Greencoat, stated that the company is pioneering innovative ways to make investment in renewable energy and energy transition-related infrastructure accessible to a wide range of investors. He also highlighted the success of Greencoat UK Wind PLC, which was launched in 2013, and is still the sector leader with a value of £3.6bn and on the edge of the FTSE 100.
Duncan Hale, Private Markets Group, Schroders Greencoat, expressed excitement at the prospect of offering access to renewable energy and energy transition-related infrastructure assets to DC pension scheme members. He stated that renewable energy assets not only provide attractive risk and return metrics, but also align with members’ sustainability requirements.
Schroders Capital’s launch of Schroders Greencoat LTAF represents a significant step towards enabling investors to support renewable energy and energy transition-related infrastructure projects while achieving their long-term financial goals. It is also a step towards a more sustainable future.
